Choose the right Fit Loan Origination System
Loan origination systems are critical to mortgage lenders and their customers as it impacts almost every aspect of the mortgage process. Since an effective LOS demands a significant investment in terms of money and time and can have far reaching effects on the very way business is conducted, having to choose from over 30 competent players can be a daunting task.
Take Five Consulting combines its mortgage industry experience with technology expertise to look into multiple forces and constraints including strategic, functional, business, technology, interfacing, financial and time factors to choose the best fit for your organization.
At TakeFive, we believe that it is our duty to provide a clear picture on the roles of an LOS platform, on the considerations while selecting one of these and on the approaches to suit the best in making an apple to apple comparison.
LOS supports all loan production processes starting from lead to close. Four basic components are present in most LOS.
1. Point of sale (POS)
POS is where the loan origination process starts. Banks have different POS for retail, wholesale and correspondent. POS share information and collects data. Efficient interaction with POS is vital for an LOS.
Fulfillment is complex as this step involves processing, underwriting, closing, funding and post-closing. It is the largest functionality of an LOS.
3. Product and pricing engine
Business rules are housed in the product and pricing engine. LOS platforms vary in this area – some offer business rule management system while some others offer integration with external systems.
4. Interface layer
Interface layer offers interfaces to various external and internal systems such as CRM systems, document management systems, Desktop underwriter, loan processor etc.